INTERNATIONAL

STRATEGIES OF MC
DONALDS
By
IMTIAZ
INTRODUCTION
• 1955- a person named Ray Kroc took the franchise of
Mcdonalds and opened a restaurant in Illinois.
• 1958- sold it’s 100 millionth hamburger
• 1965- introduced its first public stock offering
• 1983- restaurants were opened in 32 countries
• Now McDonald's operates in more than 28,000 restaurants
(some 12,600 in the US) in about120 countries worldwide.
• Non-US restaurants account for more than 60% of the
company's sales and more than 50% of profits
• Almost 80% of the units are franchised. In addition to the
burger business, McDonald's has invested in Chipotle Mexican
Grill, and acquired the Donatos Pizza.
• McDonalds serves less than 1% of the world's population each
day, so it has been able to expand rapidly overseas without
running the risk of market saturation.
PRODUCT CATEGORIES
VEG NON VEG
• McVeggie
• Chicken Maharaja Mac
• Paneer Salsa Wrap
• Mc Aloo Tikki • Mc Chicken
BEVERAGES • Filet-o-Fish
• Cold Coffee • Chicken Mexican Wrap
• Ice Tea Soft Serve • Chicken Nuggets
• Mc Shakes
• Hot Serves
DESERT
• Soft Serve Cone
• Mc Swirl
• Soft Drink
• Flavor Burst
 NON VEG
VEG

Filet-o- fish
BEVERAGES DESERT

Shakes
MAJOR COMPETITORS
• Pizza Hut
• KFC
• Subway
SWOT ANALYSIS
STRENGTHS
• Adaptability
• Technology Innovative
• Large market share.
• Strong global presence.
• McDonalds Plan to Win focuses on people, products, place,
price and promotion.
• Strong financial performance and position.
• Introduction of new products.
• Customer focus (centric).
• Strong performance in the global marketplace.
WEAKNESS
• Customer Service
• High Staff Turnover including Top management.
• Customer losses due to fierce competition.
• Ignoring breakfast from the menu.
OPPORTUNITIES
• Globalization, expansion in other countries.
• Diversification and acquisition of other quick service
restaurants.
• Growth of the fast-food industry.
• Worldwide deregulation.
• Freebies and discounts.
THREATS
• Health professionals and consumer activists accuse
McDonald's of contributing to the country’s health issue of
high cholesterol, heart attacks, diabetes, and obesity.
• McDonald’s competitors threatened market share of the
company both internationally and domestically.
COMPETITIVE ADVANTAGE
• McDonald’s success lies in its utilization of technology.
• McDonald’s implements the Frederick Taylor method of
installing managers and a system of predetermined activities
called task management.
• McDonald’s goal is to maximize its profits including all devious
means
• McDonald's maintains its competitive advantage by constantly
creating new items to add onto its menu
• McDonald's also realized the changing world we live in and
the need for healthier food
INTERNATIONAL STRATEGY
FOLLWED BY MC DONALDS
• In 1967, they first ventured out into the international market by starting a
store in Canada followed by Europe and Asia.
• They expanded to international markets in the face of increasing
regulations in the US and domestic market saturation.
• They entered international markets by leveraging standardized product
offerings, clean and bright environments, and American brand equity.
• They adapted to local regions by remodeling its retail space while
changing the product line to appeal to local tastes.
• This strategy has paid off well in the short term and McDonalds has
realized that they must adapt to each country they enter, their tactics of
both catering to local tastes.
• They conducted a proper market research analysis before expanding into
an area
FRANCHISING
• The main strategy adopted by the company to operates as a global
business was franchising.
• McDonalds franchise restaurants became well-known for the inspired and
defining vision . “Quality, Service, Cleanliness and Value
• The company has spread so widely that the term “mcdonaldization”, was
coined to describe the organization and culture of the company.
• Franchising involves the convergence of a parent company and several
small businesses. The parent company sells to the smaller businesses the
right to distribute its products or use its trade name and processes
• One essential factor that contributes to franchise success is a consistent
commitment to standards
FEW EXAMPLES
McDonald’s in China:
• Before actually starting their business 5 years business
research was carried out and all sorts of information
gathering such as the income level of the Chinese people, the
kind of foods they enjoy etc was gathered.
• They designed their counter, chairs and desks keeping in
considerations the height and body shape of Chinese people.
• Huge promotional activity was carried out.
• McDonald’s has tried to adapt more Chinese tastes by adding
more chicken meals into their menu for attracting more
customers.
McDonald’s in France:
• In France, McDonald’s has boosted it sales by remodeling
restaurants i.e. hardwood floors, wood-beam ceilings,
comfortable armchairs, and also by adding new menu items
such as espresso, brioche and more upscale sandwiches.
• They have successfully responded to the preferences of the
local area.
Mcdonald in India:
• Mc Donalds initially used beef extracts for cooking in India.
• This created a chaos in the public
• Later in order to meet with the culture of the Indian people it
avoided using of beef extracts and pork in Indian market.
OTHER STRATEGIES
One of the other strategy followed by them was Focus on
Children
• McDonald’s has paid considerable attention to the children
in every country. They built ‘happy land’ for them, offering
fantastic “happy meals” with novelty toys to them.
• Furthermore, they also launched computers with games that
were designed to inspire the children’s imagination at the
same time shape their personal characteristics.
• There are two main reasons for McDonald’s to focus on the
children:
– Children are one of the biggest consumers groups to
McDonald’s.
– McDonald’s believe that focusing on children will
provide the best engine to encourage the whole family
to come to McDonald’s.
CONCLUSION
• Following such strategies McDonald's opened its doors in India in October
1996.
• Since then, they have their restaurants in Mumbai, Delhi, Pune,
Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Chennai,
Kolkata and Gurgaon
• In India its a 50-50 joint venture partnership between McDonald’s
Corporation [USA] and two Indian businessmen. Amit Jatia (Hardcastle
Restaurants Pvt. Ltd.) and Vikram Bakshi (Connaught Plaza Restaurants
Pvt. Ltd)
• McDonald’s is one of most successful companies in the world today. With
its rapid embracement of globalization, the firm has been able to expand
and retain numerable growth.
• From the Big Mac, to the Maharaja, the company’s successive strategies,
specifically with heavy research and development have allowed it to fulfill
the tastes of locals in every country it operates.
• The company’s challenges of providing healthier foods to its patrons have
contributed to its financial success, thus enabling loyal consumers.
THANKYOU